By crypto.news | Created at 2024-10-01 08:29:48 | Updated at 2024-10-01 11:26:06
3 hours ago
A meme coin fund launched by Three Arrows Capital has come under fire for allocating around 84% of its tokens to wallets belonging to team members and insiders.
A post by BubbleMaps blockchain analytics showed that more than 80% of 3AC’s meme coin fund, Three Arrowz Capitel, appeared to be clustered together into a few wallets belonging to insiders and team members. This has led to speculation from investors that the fund may be steeped in price inflation and manipulation tactics.
An investment partner from L1D elaborated further in an article that he posted on X. According to onchain trails, the team pulled in 750 Ethereum (ETH) tokens from around 25 investors in a private pre-sale.
During the official launch, the remaining 336 ETH were dispersed across eight wallets belonging to the team that snagged $3AC listings early. According to the analysis, those wallets are poised to benefit between ten to thirty times their cost basis.
Upon further inspection, only 8% of tokens are allocated to the community while another 8% fall under liquidity. Meanwhile the rest are held by insider wallets, consisting 84% of the total tokens. The account warned traders that the 3AC token could result in a “low circulating, high cabal” case.
“It should be clear that buying into this token means placing your trust in a small group of insiders who control over 84% of the supply. Some might even label it a cabal token. The choice is yours: decide if you want to play that game.”
@0xLouisT
On Sept. 27, Three Arrows Capital launched a token with the ticker 3AC. The meme coin is one of the investment fund’s initiative to target high risk projects, with a website that includes crudely drawn children’s drawings resembling various popular meme coins like a “dog” and a “cat” along with the 3AC logo.
The investment fund claims to target high-risk projects, featuring a whimsical website that includes playful references to various meme coins, from “dog” and “cat” tokens to more controversial themes.
Within the first few hours of trading, its market capitalization soared to nearly $100 million, briefly peaking at over $170 million.
Three Arrows Capital filed for bankruptcy in July 2022 due to failing to meet creditors’ demands during a massive market downturn.
In 2021, 3AC grew into a prominent cryptocurrency venture capital managing $10 billion in assets before its collapse. By April 2022, that amount dropped to $3 billion and continued to decline until it declared bankruptcy.
On Sept. 14, the Monetary Authority of Singapore issued a nine-year prohibition order against the 3AC founders, Zhu Su and Kyle Livingston Davies, for violating different securities laws.
After the prohibition and subsequent bankruptcy, Zhu and Davies have moved on to other crypto-related projects that have ended in a similar fashion. In 2023, they launched OPNX cryptocurrency exchange which closed its services only a year later.
